Telkwa Gold Corporation

Telkwa Gold Corporation

October 20, 2006 12:17 ET

Telkwa to Commence Drilling

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2006) - Telkwa Gold Corporation (TSX VENTURE:TKW) is pleased to announce that in this time of an extreme shortage of available drills in Nevada it has been able to source a diamond drill with crew. It has arrived on the Buckskin North property in Nevada. The drill will be properly set up and commence drilling shortly.

Telkwa's 100% controlled Buckskin North property is located approximately 10 miles Northwest of Yerington, Nevada and 45 miles Southeast of Reno, Nevada. The gold occurrence at Buckskin North was first recognized visually in 1974 during logging of the hole (D-314) and the three foot interval assayed 540 ppm gold (15.75 oz/t). This high grade interval was within an interval of 16 ft of 2.76 oz/t gold. During that time, the Anaconda Copper Company drilled a total of five widely spaced holes and three deflections to confirm gold mineralization over 2500 feet along the apparent strike of the trend.

Phase one of an initial two phase drilling program will be approximately 3,000 feet on two separate zones. Two deep holes, each up to 1200 feet deep, will test the high grade gold zone which was originally drilled by the Anaconda Copper Company in 1974. One other hole will be drilled on a copper-gold zone newly located during this summer's field work on the property.

Michael Marchand, President, said "Management of Telkwa is extremely pleased to have finally secured a drill for this high grade property that has laid dormant for decades and looks forward to our first Nevada drilling program".

Michael Marchand, Ph.D. P. Geol., President of Telkwa Gold was the qualified person who reviewed the information in this press release.

Telkwa Gold Corporation's current exploration focus is Nevada where it has four properties and it also has two exploration properties located in British Columbia. Telkwa maintains its website with corporate information, reports and images of our exploration projects.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

This news release is not for dissemination in the United States or to any United States new service, and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Telkwa Gold Corp will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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